By Caroline Valetkevitch
NEW YORK (Reuters) – Shares of U.S. mid-cap retailers mostly eased on Tuesday as the latest batch of quarterly results from companies including BJ’s Wholesale Club Holdings provided more disappointments from the industry.
Shares of BJ’s were down 6.6% and earlier hit their lowest level since July 2022 after the company reported quarterly revenue that missed analysts’ expectations.
Shares of its bigger rival, Costco Wholesale, were down 1.3%. Costco has a current market value of about $215 billion compared with BJ’s approximate $9 billion, per Refinitiv.
At the same time, shares of Dick’s Sporting Goods Inc were moving between positive and negative territory early on Tuesday after the company reported mostly upbeat quarterly results.
But Dick’s Sporting Goods and other retailers fell sharply last week in sympathy with Foot Locker, whose stock plunged 27% after the footwear retailer cut its annual sales and profit forecasts.
Analysts at D.A. Davidson wrote that they expected “a bit of a relief rally” in Dick’s Sporting Goods after its selloff last week. “Their 1Q23 print was solid in our view, not perfect,” they wrote, adding, “the company is taking share in a challenging environment.”
Foot Locker’s stock was trading down near flat by midday Tuesday, while shares of apparel and footwear company VF Corp, which reports results after the closing bell, were little changed as well. It includes such brands as Vans.
Among other retail stocks declining on Tuesday, shares of Urban Outfitters were down 1.3% ahead of the lifestyle retailer’s quarterly results, also due after the closing bell.
(Reporting by Caroline Valetkevitch; Editing by Lance Tupper and Marguerita Choy)
